Current Attempt in Progress Novak Woodcrafters sells $230,000 of receivables to Commercial Factors, Inc. on a with recourse basis. Commercial assesses a finance charge of 5% and retains an amount equal to 4% of accounts receivable. Novak estimates the fair value of the recourse liability to be $9,670. Prepare the journal entry for Novak to record the sale. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation Cash Loss on Sale of Receivables Receivable from Factor Recourse Liability Accounts Receivable eTextbook and Media List of Accounts Save for Later Last saved 1 day ago. Debit Credit 9,670 Attempts: 0 of 3 used Submit Answer

Current Attempt in Progress Novak Woodcrafters sells $230,000 of receivables to Commercial Factors, Inc. on a with recourse basis. Commercial assesses a finance charge of 5% and retains an amount equal to 4% of accounts receivable. Novak estimates the fair value of the recourse liability to be $9,670. Prepare the journal entry for Novak to record the sale. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation Cash Loss on Sale of Receivables Receivable from Factor Recourse Liability Accounts Receivable eTextbook and Media List of Accounts Save for Later Last saved 1 day ago. Debit Credit 9,670 Attempts: 0 of 3 used Submit Answer

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter8: Revenue Recognition, Receivables, And Advances From Customers

Section: Chapter Questions

Problem 31E

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Culver Corp. factors $351,000 of accounts receivable with Larkspur Finance Corporation on a without recourse basis on July 1, 2020. The receivables records are transferred to Larkspur Finance, which will receive the collections. Larkspur Finance assesses a finance charge of 1.90% of the amount of accounts receivable and retains an amount equal to 4% of accounts receivable to cover sales discounts, returns, and allowances. The transaction is to be recorded as a sale. Prepare the journal entry on July 1, 2020, for Culver Corp. to record the sale of receivables without recourse. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Culver Corp. factors $351,000 of accounts receivable with Larkspur Finance Corporation on a without recourse basis on July 1, 2020. The receivables records are transferred to Larkspur Finance, which will receive the collections. Larkspur Finance assesses a finance charge of 1.90% of the amount of accounts receivable and retains an amount equal to 4% of accounts receivable to cover sales discounts, returns, and allowances. The transaction is to be recorded as a sale. Prepare the journal entry on July 1, 2020, for Larkspur Finance Corporation to record the purchase of receivables without recourse. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)